Question

On April 1, 2017, Greg Taylor created a new travel agency, Taylor Travel. The following transactions occurred during the company’s first month.

Apr.		1		Taylor invested $43,000 cash and computer equipment worth $14,400 in the company.
Apr.		2		The company rented furnished office space by paying $2,300 cash for the first month’s (April) rent.
Apr.		3		The company purchased $2,200 of office supplies for cash.
Apr.		10		The company paid $3,600 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.
Apr.		14		The company paid $1,400 cash for two weeks’ salaries earned by employees.
Apr.		24		The company collected $18,000 cash on commissions from airlines on tickets obtained for customers.
Apr.		28		The company paid $1,400 cash for two weeks’ salaries earned by employees.
Apr.		29		The company paid $500 cash for minor repairs to the company’s computer.
Apr.		30		The company paid $650 cash for this month’s telephone bill.
Apr.		30		Taylor withdrew $2,200 cash from the company for personal use.

Information for month-end adjustments follows:

1. Two-thirds (or $200) of one month’s insurance coverage has expired.
2. At the end of the month, $850 of office supplies are still available.
3. This month’s depreciation on the computer equipment is $240.
4. Employees earned $560 of unpaid and unrecorded salaries as of month-end.
5. The company earned $1,780 of commissions that are not yet billed at month-end.

• Requirement
• General Journal
• General Ledger
• Trial Balance
• Income Statement
• St Owners Equity
• Balance Sheet
• Post Closing

General Journal tab - Prepare journal entries for Taylor Travel's first month of operations. Prepare any necessary adjusting and closing entries for the current month.

General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

Trial Balance tab - You may view the unadjusted, adjusted, or post-closing trial balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs.

Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Statement of Owner's Equity tab - The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Post-Closing tab - Use the drop-downs to indicate whether each account is included on the post-closing trial balance.

Answer 1

Journal Entries
date	explanation	debit	credit
1-Apr	cash	43000
	computer	14400
	owners capital		57400
2-Apr	rent expense	2300
	cash		2300
3-Apr	supplies	2200
	cash		2200
10-Apr	prepaid insurance	3600
	cash		3600
14-Apr	salary expense	1400
	cash		1400
24-Apr	cash	18000
	revenue from commission		18000
28-Apr	salary expense	1400
	cash		1400
29-Apr	repairs expense	500
	cash		500
30-Apr	telephone expense	650
	cash		650
30-Apr	Drawing	2200
	cash		2200
Adjsutment Entries
30-Apr	insurance expense	200
	prepaid insurance		200
30-Apr	supplies expense	1350
	supplies		1350
30-Apr	Depreciation expense	240
	accumulated depreciation		240
30-Apr	salaries expense	560
	salaries payable		560
30-Apr	commission receivable	1780
	revenue from commission		1780
	T-Account
	cash
owners capital	43000	rent expense	2300
revenue from commission	18000	supplies	2200
		prepaid insurance	3600
		salary expense	1400
		salary expense	1400
		repair expense	500
		telephone expense	650
		Drawings	2200
		balance	46750
	computer
owners capital	14400	balance	14400
	Owners capital
balance	57400	cash	43000
		computer	14400
	rent expense
cash	2300	balance	2300
	supplies
cash	2200	supplies expense	1350
		balance	850
	prepaid insurance
cash	3600	insurance expense	200
		balance	3400
	salary expense
cash	1400	balance	3360
cash	1400
salaries payable	560
	revenue from commission
balance	19780	cash	18000
		commission receivable	1780
	repairs expense
cash	500	balance	500
	telephone expense
cash	650	balance	650
	Drawings
cash	2200	balance	2200
	Insurance expense
prepaid insurance	200	balance	200
	supplies expense
supplies	1350	balance	1350
	Depreciation expense
accumulated depreciation	240	balance	240
	accumulated depreciation
balance	240	depreciation expense	240
	salaries payable
balance	560	salary expense	560
	commission receivable
revenue from commission	1780	balance	1780
Trial Balance
explanation	Debit	credit
cash	46750
computer	14400
Owners capital		57400
rent expense	2300
supplies	850
prepaid insurance	3400
salary expense	3360
revenue from commission		19780
repairs expense	500
telephone expense	650
Drawings	2200
Insurance expense	200
supplies expense	1350
Depreciation expense	240
accumulated depreciation		240
salaries payable		560
commission receivable	1780
total	77980	77980